Seadrill Reports Q4 & FY25 Results, Adds $0.5B Backlog, Issues Strong 2026 Guidance
Summary
Seadrill Limited announced its fourth quarter and full year 2025 results, reporting a net loss but significantly boosting its contract backlog by $0.5 billion and providing optimistic 2026 guidance.
Key Events
-
Q4 & Full Year 2025 Results
Reported a Q4 2025 net loss of $10 million and a full year 2025 net loss of $77 million, with Adjusted EBITDA of $88 million for Q4 and $353 million for the full year.
-
Significant Contract Wins
Secured new contract awards across seven rigs, adding $0.5 billion to the contract backlog, including a 14-month award for the West Capella.
-
Increased Contract Backlog
Total contract backlog now stands at approximately $2.5 billion as of February 25, 2026, providing substantial revenue visibility.
-
Strong 2026 Guidance
Provided full year 2026 guidance with total operating revenues projected between $1.40 billion and $1.45 billion, and Adjusted EBITDA between $350 million and $400 million.
Analysis
This 8-K filing is highly important as it provides a comprehensive update on Seadrill's financial performance and future outlook. While the company reported a net loss for both Q4 and the full year 2025, the market is likely to focus on the substantial new contract awards totaling $0.5 billion, which significantly increases the company's backlog to $2.5 billion. This backlog provides strong revenue visibility and stability. The positive 2026 guidance for operating revenues ($1.40B-$1.45B) and Adjusted EBITDA ($350M-$400M), coupled with the CEO's optimistic commentary on improving deepwater demand and tightening supply, suggests a strong operational trajectory despite the recent losses. The stock trading near its 52-week high indicates existing positive sentiment, which these forward-looking statements could reinforce.
At the time of this filing, SDRL was trading at $45.00 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $2.8B. The 52-week trading range was $17.74 to $45.90. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.